The study by probate lending specialist Tower Street Finance paints a depressing picture for potential beneficiaries.

While around three-quarters of people expect to leave some inheritance to beneficiaries, the majority – three out of five - reckon that the current cost of living crisis will ‘unquestionably’ reduce the value of their estate.

On average, the estimated total value of an estate has fallen by 23.5% in the last two years from £289,000 in 2020 to £221,000 in 2022, according to the study.

Smaller estates are likely to be particularly worrying for those who are banking on receiving an inheritance to get by.

Three in ten people surveyed said that if they inherited money in the next 12 months they would use it to cover living costs – four times as many would have done in 2020.

One in twenty admitted they were relying on receiving an inheritance at some point to cover their living costs, while one in ten said they were depending on receiving an inheritance to pay off debts.

Anyone named as the executor of a will is also likely to face the additional financial burden of paying for the funeral of their loved one.

Only two out of five adults said they would have enough money to hand to pay for a funeral if needed, based on the average 2022 cost of £4,927.

A third said they would not be able to cover the cost of a funeral.

Dicky Davies, founder and business development director at Tower Street Finance, said: “The current cost of living crisis isn’t just having an impact on the present day, but it’s also likely to have far-reaching impacts into the future.”

He said it is worrying that many people are depending on receiving money from an inheritance to get by day-to-day, especially as the research indicated that estate values are dropping due to rising living costs.

He said: “Therefore beneficiaries should expect to receive less, but there is also the added issue of the probate process taking time.”

The company has developed a range of solutions to help people access their inheritance earlier.

• The research was based on a survey of 2,000 UK adults (who are - or expect to be - a beneficiary of a Will) in November 2020 by OnePoll with the same questions re-run as a survey (to a matching audience) in October 2022, with 3Gem.